FCC Senior Economist J.P. Gervais takes a look at current global economic trends and how they impact Canadian agriculture.
Key Points
Growth in the Canadian agri-food industry is dependent on GDP growth in emerging economies (an increase in GDP generally indicates an increase in income, and income growth is one of the main drivers of rising food demand).
The Canadian economy is strong compared to other developed countries.
The debt crisis in Europe is still unresolved and continues to impact commodity prices.
Interest rates could go up if the core inflation rate increases.
Canada is aggressively pursuing free trade agreements to diversify its trading partners.
